You Can’t Put A Cork In A Geyser – Even Though Public Employee Union Bosses Would Like To Do Just That
As a matter of practical math, currently public employee total compensation (salary, benefits, retirement benefits) are unsustainable. If you look all around California, you start to see more and more examples of local governments who are looking at drastic cuts in basic services as personnel cots — especially on the public safety side — gobble up an ever-increasing portion of government budgets. Given the kinds of cuts that are taking place in the state budget, it is clear that money that could be used for services instead is going to increase the membership of the $100,000+ annual pension club. Perhaps the most sobering reality out there is that despite the ever-increasing amounts of funds being allocated to fund employee compensation, there is a still a vast unfunded liability that a Stanford University study pegs high as 500 billion dollars. While these are large numbers, I cannot imagine that anyone is surprised. We have a system where vast numbers of government employees are retiring as early as 50 years of age and then being paid at full-time employee salary levels for the rest of their lives. Seriously.
Today,… Read More